Igor Golovniov | Lightrocket | Getty Image
Cable giant Comcast I am looking at the wireless business for growth.
COMCAST executives reported that the company would focus on mobile businesses after reporting 139,000 housing broadband customers in the fourth quarter on Thursday.
Broadband was a growth engine in the cable industry, especially after the departure of cable TV customers. Broadband segment profits remain stable, but COMCAST is in the midst of recent deceleration of customers who are related to investors, like cable pears.
COMCAST shares decreased by more than 12 % on Thursday morning transactions.
A company executive said that he would have a bidding with investors on Thursday’s income and shifts a strategy to package mobile bands on a broadband.
Stagnation is derived from many factors, mainly the rise in wireless providers. Verizon and T-mobile Provides home broadband options.
“In short, the competition is intense, dynamic, and the entire footprint and customer segments are in a variety of conditions,” said COMCast President Mike Cavanag in an investor call. “And there are no signs that this will change in the short term.”
Mobile movement
2022, COMCAST and fellow cable giant Charter communication Each reported that the first quarterly decrease in the growth of the broadband subscriber.
Executives quote reasons such as deceleration of house buying and selling. Note that few people will sign up to the cable when getting a new house. When rockdown sends Americans to the house and work and learn.
However, the rise of fixed wireless products from Verizon and T-Mobile has greatly increased competition. In December, Dave Watson, a COMCAST cable CEO, called a dynamic and warned of the fourth quarter loss of 100,000 customers. The announcement on Thursday was equivalent to a deeper supporter’s subscriber.
Fiber Internet so -called overbuilding has contributed to competition, as fixing Wireless, a 5G high -speed broadband product, an alternative to cable broadband. In the past, COMCAST has rejected fixed wireless as an “inferior product”.
On Thursday, CFO Jason Armstrong stated that fixed wireless and probably satellite companies would “open the permanent part of the market.” He also pointed out that the increase in cable broadband speed has increased as an advantage.
In accordance with this, COMCAST is looking for mobile to grow and maintain a customer base.
“We are the $ 80 billion US housing broadband market, but we are far more than $ 200 billion in the US wireless market,” says Armstrong. “Wireless is an essential part of the broadband strategy.”
COMCAST currently has more than 7.8 million mobile lines, that is, 12 % of residential broadband customer bases, and has given a “long runway”.
COMCAST launched XFINITY Mobile in 2017, but Charter began to provide mobile in 2018. The two largest cable companies in the United States have been advertising in a consistent quarterly profit since then. A small operator such as Altice USA and COX has been added.
COMCAST and its cable pear mobile products are dependent on Verizon’s wireless network, and customer home broadband networks and Wi-Fi hot spots. Only COMCAST broadband customers can sign up to mobile services throughout the company.
Cable companies have stated that mobile business is the key to the so -called cancellation, or to reduce customer losses, acquire new subscribers, and promote profits.
Cavanagh said on Thursday that it would pursue the simplification of the bundle following the lead of Charter’s mobile and broadband. In September, Charter announced a series of changes to a plan with a mobile with a mobile. CEO’s Chris Win Free tells CNBC that he wants to make a bold statement.
Disclosure: COMCAST owns CNBC parent company nbcuniversal.
